It works on any Windows Server install, I used Windows Server 2003. You just arseign a new server role - media server. This installs the Windows Media Services control panel. The Windows Media Encoder is a free download. It works pretty much out of the box. You drop your content into C:\WMPub\WMRoot. I had to arseign some security stuff but not a lot of configuring. Windows even provides some sample content.
David
PS: LOL I got a personal visit from the CEO and a handshake out of this one. I was considering never washing my hand again but then regained my senses.